The Age of Big Business: A Chronicle of the Captains of IndustryHendrick, Burton Jesse
History
The Age of Big Business: A Chronicle of the Captains of Industry
Hendrick, Burton Jesse
Big business -- United States -- History; Industries -- United States -- History
The bicycle business in this country had passed through a similar
experience. When first placed on the market bicycles were expensive;
it took $100 or $150 to buy one. In a few years, however, an excellent
machine was selling for $25 or $30. What explained this drop in price?
The answer is that the manufacturers learned to standardize their
product. Bicycle factories became not so much places where the articles
were manufactured as assembling rooms for putting them together.
The several parts were made in different places, each establishment
specializing in a particular part; they were then shipped to centers
where they were transformed into completed machines. The result was that
the United States, despite the high wages paid here, led the world in
bicycle making and flooded all countries with this utilitarian article.
Our great locomotive factories had developed on similar lines. Europeans
had always marveled that Americans could build these costly articles so
cheaply that they could undersell European makers. When they obtained a
glimpse of an American locomotive factory, the reason became plain. In
Europe each locomotive was a separate problem; no two, even in the same
shop, were exactly alike. But here locomotives are built in parts,
all duplicates of one another; the parts are then sent by machinery to
assembling rooms and rapidly put together. American harvesting machines
are built in the same way; whenever a farmer loses a part, he can go
to the country store and buy its duplicate, for the parts of the same
machine do not vary to the thousandth of an inch. The same principle
applies to hundreds of other articles.
Public-domain text, read in full here on John Shaqi.
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